All Forum Posts by: Curtis H.

@Jay Hinrichs

I do indeed have in the contract that the money goes to me, the buyer, but if they are going to get the check then that is a problem either way. That's a lot to ask of someone who has money problems and gets a check for $5K to just hand it over. I do have their contact info and can easily offer them $500 when the refinance is done as a thank you sort of speak, which I wanted to do anyway. That could make it easier to get them to sign the check over. Word it as more of a "Hey we are putting the loan in our name and just wanted to say thank you for everything with $500. You will be getting a check from the lender in the amount of "X" and you have to sign it over to me like it says in the contract, and I will give you the $500. Now please don't try to cash it or we will end up in court and that benefits nobody."

@Chris Mason

@Jay Hinrichs

@Mindy Jensen

UPDATE!

So I am at the home stretch of the refinance on the Sub2 that I am living in, and this is the part where I have to talk to the bank about getting a payoff statement, finding out how much is in escrow account, when are the taxes and insurance are due to be paid etc.

However the most important question I have is about how I get the money in the escrow account? I have a notarized POA signed by the sellers at closing, but I was told by my escrow agent that there is nothing I can do to get that check. It's going to the previous owners since the loan is in their name, period. I have to work with the previous owners on getting the money. I can't believe that is the only way to handle this. What good is the POA then? Just to get info? I probably have $5K or more in that account and if they get that check, it's court or just call it the cost of doing business.

Thoughts?

@Chris Mason 

@Jay Hinrichs

Figured I'd tag some folks before this gets buried. 

I am working a refinance right now and wanted to hold off on the appraisal until Feb 13th. There are updates I need to make prior to an appraiser coming out. I asked the lender if I got you ALL paperwork uploaded and contracts signed this week, and the appraisal was done on the 13th, would that jeopardize a Feb closing. Her answer was get the appraiser in there asap. My response is I don't want a crappy appraisal. However I don't want to lose the rate lock either by missing a Feb closing. 

Is two weeks enough time for a lender to close if that's all we are waiting on? I got the sense (since I am in sales) that they panicked when I said I want to stall, which means there is a chance I can find another lender, etc. They want to close the deal and get me vested to only close with them. 

Any insight would help. I was thinking meet in the middle and have the appraisal Friday the 10th, that gives them 18 days to do the rest.

Well it's about that time...

Some of you have seen my other posts about my primary I got Sub2 and am going to finally refinance after 2 and a half years and take it out of the seller's name and into mine. The lender has ordered the appraisal and I have some questions...

1) If I didn't touch a thing in the house I could still qualify for the refinance being lower than 80% LTV. So I'm good there. However, my bigger concern is the HELOC. Do they normally send an appraiser when you apply for a HELOC? If these are two separate appraisals then I won't worry so much about the one for the refinance.

2) If this appraisal does matter for the sake of the HELOC, what things help an appraisal the most? It's mostly cosmetic that needs to be done. Stucco patching, painting exterior, new garage door, kitchen cabinets are a mess, couple rooms need to be painted.

Any help is appreciated!

@Chinmay J.

Yep you are spot on. This is a solution for people who's only real issue is credit card debt. Which is a large portion of people. Many people pay their bills on time, they just went too far with the credit cards. Easy fix and can pay off big time like it's about to for me when I refinance a $400K loan at the best rate available.

Just an update...Still going up. 

As of today I am at 772, 786, 786

This works people.

Call went very well and the answers to all the above questions was what I want to hear. I explained to them I will not give lender info until I decide to go with them. Not because I didn't trust them, but I know in a rush to close loans people don't always read the notes. New lender calling the current lender before we are locked in can be very bad in a Sub2 situation.

The only thing I don't like about the situation I am now in, which is not a terrible thing, is to lock in the rate before it goes up (and it will) I will have to move fast. Move fast means quick appraisal. Quick appraisal means no time to make cosmetic repairs to get better appraisal. Lower appraisal means less money available for the HELOC, which is a MAJOR tool in my investing for the next two years. Getting access to $100K instead of $200K can really alter things. All in all, good problem to have considering I was in a damn apartment in an area I HATED 2 and a half years ago!

@Brian Person

Thanks for the feedback. 

I think all I need to know now is should I tell them about the Sub2. They are going to ask if I rent the home now, and I feel like it's not illegal to do Sub2 so why not tell them the truth. If they seem wishy washy about it, move on to another.

The questions I will probably ask them are...

1) When can I lock the rate and how much is it to do so?

2) Prepayment penalty?

3) Since LTV is lower than 80% can I pay taxes and insurance myself and terminate escrow account? (not that I would, but I always want the option to do so)

4) How quickly will you sell the mortgage? Do you sell to a handful of companies or to the highest bidder typically?

5) Any programs out there that I can take advantage of?

6) Lastly, don't call the current lender under any circumstances until I give permission and we are locked in. I have payoff info good for 30 days out and can get an updated one when needed. (I don't need them alerting the lender and then we don't close, and now they call the loan due. I am kind of worried about this)

Whatcha think?